Terra (LUNA) Price Prediction 2025-2030: LUNA oscillates between $2 as…
Disclaimer: The datasets shared in the following article have been compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject.
The price of Terra Luna (LUNA) has remained stagnant over the past seven days, before reaching $2. However, the coin was trading at $1.90 at press time, and was barely struggling to keep above the $2.0 price mark.
Read Price Prediction for LUNA 2023-24
Its market capitalization has risen from $383 million to $406 million during the same period, hitting $415,794,941 at press time. As the SEC has charged Terra founder Do Kwon with fraud over the $40 billion crypto crash, it has adversely affected the market.
Following the collapse of FTX, LUNA’s market capitalization fell from $285 million to $160 million last year. Though there is a relative improvement over its previous warning, we cannot deny the fact that LUNA will never be considered a ‘safe’ cryptocurrency, and, therefore, may not return to its former heights.
Stablecoins, such as UST, were created to protect investors from the extreme price volatility of popular cryptocurrencies, such as Bitcoin.
As fiat currency is pegged to reserves such as gold, a stablecoin is pegged to either a fiat currency (e.g. USD) or a supporting cryptocurrency. In this case, TerraUSD was pegged to Luna. But herein lies the conflict. A cryptocurrency isn’t equivalent to gold reserves. As Luna prices got destabilized, it had an impact on UST prices too, and the entire stablecoin system collapsed in the second quarter of 2022.
The stablecoin project was aimed at complementing the price stability and wide adoption of fiat currencies with the decentralized model of cryptocurrency.
Even those who are only vaguely familiar
Read more on ambcrypto.com
